Ring Station Company began business on January 1 and immediately issued 500,000 shares of its $1 par value common stock for $8,000,000. At the end of the year it paid $400,000 in cash dividends. In midyear, the firm bought back some of its own shares. The company reports the following additional information at December 31:
Net income $1,750,000
Common stock $500,000
Retained earnings beginning of year $0
Common shares authorized 1,000,000
Shares outstanding at year end 300,000
What is the retained earnings balance at the end of the year?